| Worldwide Mobile Phone Penetration |  |  |  |
The worldwide mobile phone market showed continued strength in Q1 2006 with total shipments of 226.7 mln units, representing 26% growth over Q1 2005, according to IDC. Although the market experienced a sequential decline of 7.3% when compared to the record Q4 2005, much of this was due to expected seasonality. Much of the worldwide growth has been attributed to developing markets, which have not only seen an influx of entry-level devices for first-time users, but an increasing interest in mid-range and higher end devices.  * Nokia. The Finnish giant started 2006 much in the same way it closed out 2005 – as the undisputed leader of the worldwide mobile phone market. Growing 39.6% year over year, Nokia marked yet another quarter having wrapped up more than thirty percent of the worldwide market. Thanks to the success of its higher-priced models, average selling prices increased, stemming the trend of steady decline for the past several quarters. * Motorola. The U.S.-based company continued its string of quarters of year-over-year growth, this time posting a 60.6% gain to begin 2006. Motorola continues to leverage its tremendously popular RAZR model with different colors and form factors in the PEBL and SLVR, and its sustained shipments into developing markets helped propel sales and shipments even further. * Samsung. With shipments increasing 18.4% year over year, Samsung remained firmly in place as the number three worldwide vendor. With shipment improvement to Latin America and Asia/Pacific, the company pushed even closer to the thirty million unit mark. At the same time, while Samsung increased its shipments from a year ago, sales had a slight decrease. * LG Electronics. Standing pat in the number four position is LG Electronics, whose first quarter shipments resulted in a 40.5% increase from a year ago. This was the first post-holiday quarter during which LG Electronics' shipments stayed solidly above the ten million unit mark. The combination of a decrease in shipments, higher marketing expenses, and product mix deterioration led to a decrease in sales this quarter for the company, which ultimately resulted in an operating loss. * Sony Ericsson. The 50/50 venture began the year with an impressive 41.5% year-over-year improvement, and also marked the first time that Sony Ericsson's post-holiday shipments remained firmly above the ten million unit mark. At the same time, after trailing LG Electronics by just a hundred thousand units last quarter, Sony Ericsson saw the difference increase to 2.3 million units. Three new flagship models were announced for music, imaging, and enterprise-focused consumers, and spanned the full spectrum of price points. |
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